Anticipating Game Launch Success, Electronic Arts Raised Guidance
With fiscal 2Q16 results, EA raises fiscal 2016 expectations
EA raised guidance for fiscal 3Q16 and 2016 expectations
Previously in the series, we looked at Electronic Arts’ (EA) fiscal 2Q16 performance. Its sports titles made it to the Top 10 Games list for September 2015.
On the back of its game launches, Electronic Arts now expects revenues and EPS (earnings per share) to be $1.8 billion and $1.75, respectively, for fiscal 3Q16. Analysts’ expectations for Electronic Arts are $1.7 billion and $1.74 for revenues and EPS, respectively.
For full year fiscal 2016, Electronic Arts raised its revenue forecast to $4.5 billion from the previous $4.45 billion. It raised its EPS forecast to $3.00 per share from $2.85. Analysts’ expectations were $4.5 billion and $2.96 for revenue and EPS, respectively, for fiscal 2016.
EA launched Need for Speed
On September 30, 2015, Electronic Arts launched Need for Speed: No Limits. This game was launched exclusively for mobile platforms and is available for free download on Apple’s (AAPL) iOS and Google’s (GOOG) Android systems. In the past few months, the game has garnered a lot of attention, as it’s the first original title developed specifically for mobile devices.
The company will release the Need for Speed reboot on November 3, 2015, when it will be available on Japan- (EWJ) based Sony’s (SNE) PlayStation 4, or PS4. Currently, it’s only available to players with access to the Microsoft (MSFT) Xbox One.
Earlier, it was scheduled for global multi-platform release. However, its developer, Ghost Games, announced that PC gamers will have to wait until March 2016 to play the game.
EA expects Star Wars: Battlefront to be a big seller
On November 17, 2015, Electronic Arts is launching its video game Star Wars: Battlefront. Earlier, the company said it expects to sell 9–10 million units of the game. However, now it expects to sell 13 million copies in fiscal 2016. With the raised guidance, it’s clearly evident that EA is quite upbeat with this launch.
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